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Kiwis favour Boxing Day over Black Friday – PriceSpy

New research reveals Boxing Day offers great bargain opportunities – but not everything is cheaper. Shopping expert shares sneaky sales tips to watch out for.

Boxing Day has retained its status as New Zealand’s most-favoured sale event, according to new insights released from PriceSpy.

But shoppers are being urged to exercise caution across this busy purchasing period. This advice comes in light of PriceSpy research showing that 17 per cent of products listed on the fully impartial site saw a price increase on Boxing Day last year-, and 10 per cent were subjected to being a fake sale–.

Boxing Day is the biggest shopping event in New Zealand

Historical click data from PriceSpy found that consumer purchase interest peaked on Boxing Day last year, exceeding all other standalone sale events, including ‘Black Friday’.

Source: PriceSpy Consumer Purchase Interest – 1 November – 31 December 2023

Liisa Matinvesi-Bassett, New Zealand country manager for PriceSpy, says: “Boxing Day stands out as the favourite shopping event among Kiwis, distinguishing New Zealand’s retail trends from the global pattern, where Black Friday typically dominates as the year’s most significant shopping event.”

Resilient turnout of shoppers predicted this Boxing Day

Findings from PriceSpy’s latest consumer omnibus survey— also reveal a significant 54 per cent of respondents plan to shop this Boxing Day.

“The fact that over half of the respondents in our consumer omnibus survey are planning to shop on Boxing Day is significant, particularly in light of the ongoing cost-of-living crisis and inflation affecting consumers at this present time,” says Liisa

As shared in the 2023 Black Friday Report, the wider impacts of the cost-of-living crisis are being felt by consumers:

94 per cent of the survey respondents say they have been impacted by the cost of living crisis this year;

93 per cent of the survey respondents say they have noticed price increases across everyday items, like fuel and groceries this year; And, 32 per cent of the survey respondents say they do not intend to shop across any sale event this year.

“In light of economic challenges, some New Zealanders are opting out of major sales like Boxing Day. In contrast, others see it as a chance to save money. 58 per cent of survey respondents say they have delayed their Christmas shopping for the lower prices on Boxing Day,” says Liisa.

Kiwis Are Tightening Up Boxing Day Budgets Contrasting with the anticipated rise in spending for Black Friday, as detailed in the Black Friday Report, PriceSpy’s survey results show a decrease in spending intentions for Boxing Day, reflecting the challenges of the current economic climate.

PriceSpy’s survey results revealed that the average amount New Zealanders plan to spend on Boxing Day this year is $840.40, marking a substantial decrease from the 2022 average of $1203.30 and the 2021 figure of $954.80.

Liisa comments: “This year, we’re seeing a decrease in spending intentions for Boxing Day, likely due to the cost-of-living crisis, inflation, and the rising cost of goods.

“In response, consumers are recalibrating their budgets, often cutting back on spending in some areas to offset increased costs elsewhere in their lives. Moreover, Boxing Day comes right after the costly Christmas season, which could be another factor encouraging a more prudent approach to this year’s Boxing Day spending.”

Boxing Day Shopping: Navigating Genuine Deals and Avoiding Sneaky Sales Tactics

With an estimated 54 per cent of Kiwis planning to shop this Boxing Day, will Boxing Day offer the biggest discount opportunities? PriceSpy’s analysis of last year’s (2022) pricing patterns reveals:

44 per cent of the products listed on PriceSpy experienced a price drop on Boxing Day-.

Almost one in five (19 per cent) products listed on PriceSpy saw a price reduction of 10 per cent or more, highlighting substantial discount opportunities-.

The overall average price decrease across the products that were discounted by 10 per cent or more on Boxing Day was -21.33 per cent-.

“From our research, it’s evident that Boxing Day presents significant discount opportunities for consumers, so long as they conduct important pricing research to be sure that the item they are looking to buy is being sold at a worthwhile price,” says Liisa.

Furthermore, PriceSpy’s Price Index data revealed that Boxing Day offered a lower indexed price drop than Black Friday.

But don’t assume everything is on sale on Boxing Day. For those looking to shop this Boxing Day, PriceSpy encourages shoppers to conduct pricing research and check a product’s price history data, as failing to do this may lead to spending more than they may otherwise need to:

PriceSpy’s research uncovered that nearly 17 per cent of all products listed on its site were more expensive on Boxing Day compared to the beginning of December-.

“Our ongoing research highlights the importance of consumer awareness regarding pricing during significant sales events like Boxing Day. It’s particularly disappointing to buy a product and then find out it could have been purchased for less at another time or from a different retailer,” says Liisa.

PriceSpy’s research also uncovered that 10 per cent of items on Boxing Day were subjected to being a fake sale-.

“Although most retailers aim to offer genuine discounts, our research, unfortunately, reveals that sneaky sales tactics do occur, especially during major sale events like Boxing Day and Black Friday,” says Liisa.

Three Sneaky Sales Tactics to Watch Out For This Boxing Day:

1. Rollercoaster pricing or fake sales: The terms ‘rollercoaster pricing’ and ‘fake sales’ refer to a strategy where retailers incrementally increase a product’s price and then abruptly lower it, promoting a discount based on this inflated price. For instance, they might advertise a 50 per cent discount from the previous day’s price, but in reality, compared to the price from 30 days prior, the discount might only be 20 per cent.

2. Yo-Yo Pricing: Here, prices fluctuate frequently, sometimes even within days or weeks. Retailers might present these as limited-time offers to stimulate quick sales.

3. Bundle Pricing: Retailers offer an item for free or at a discount with the purchase of another product. However, the price of the main item might be increased to offset the cost of the ‘free’ item.

Three Simple Strategies on How to Shop Smartly and Avoid Deceptive Sales Tactics

Consumers can significantly enhance their sale shopping strategies by using a free price comparison site or app, such as PriceSpy.

1. Search out the cheapest price

Don’t settle on the first price you see. Take the time to compare prices across different retailers. This step is crucial, as the same item can often be found at a better price elsewhere, leading to significant savings.

2. Check the price history

Gaining insight into the true worth of a product is possible by examining its historical pricing data. This information provides a transparent view of how the product’s price has varied over time, enabling shoppers to make more informed purchasing decisions. A key question to consider is, “Is today’s price the lowest, or could the product be bought for less at another time?”

3. Efficient Shopping with Price Alerts

It’s also worthwhile that shoppers make the most of free features, such as price alerts for items they are interested in buying. These alerts notify a shopper when the price of a monitored item falls below a set threshold. This essentially means that shoppers may not need to wait for big sale events like Boxing Day to find the best prices, as they’ll be informed immediately when these prices drop.

Liisa concludes: “In summary, while Boxing Day continues to attract Kiwi shoppers in with significant saving opportunities, at an otherwise more expensive time, consumers do need to conduct some quick and easy pricing research, using tools like PriceSpy, to ensure the price they are paying is worthwhile.”

 

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